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Electronics Production |

Arrow to acquire DNSint.com AG

Arrow Electronics, Inc. announced that it has signed a definitive agreement pursuant to which Arrow will acquire all of the issued share capital of DNSint.com AG for a purchase price of approximately EUR 131 million ($157 million), including the assumption of approximately EUR 28 million ($34 million) of net debt. Arrow will utilize a portion of its cash and short-term investments on hand (approximately $654 million at September 30, 2005) to fund the purchase price.

"The DNS acquisition enables us to strategically expand our enterprise computing solutions business outside of North America and we are pleased to be partnering with such a strong and well-managed business as DNS. Reflecting its focus on the broader global marketplace, we have renamed our computer products business, Arrow Enterprise Computing Solutions," stated J. Edward Coleman, President of Arrow Enterprise Computing Solutions. DNS, which is headquartered in Munich, Germany and has approximately 320 employees, distributes mid-range computer products in Germany, Austria, Switzerland, Norway, Sweden, Denmark, Finland, the Baltic countries, Poland, the Czech Republic, Slovakia, Slovenia, Croatia and Hungary and is the largest supplier of Sun Microsystems products in this region. Total 2005 sales are expected to exceed EUR 310 million ($375 million). DNS, like Arrow, follows a value-added distribution strategy. Besides its strong business in the server and storage segment, it is also one of the leading European value-added distributors for security solutions, access infrastructure, virtualization and networking infrastructure products. Services offered range from consulting, training, marketing and sales services to logistics services. "Being Arrow's first investment in Europe in a value-added computer products distribution business will enable us to execute on our business strategies in an even more powerful way," stated Kurt Schoffer, Managing Board Member at DNS. "We have been excited to see many similarities between the Arrow and DNS strategies. This transaction will strongly support the DNS business model and will become the basis for our accelerated growth in the European markets," added Manfred Moullion, DNS Managing Board Member. "We are excited to be bringing our very successful organizations together," stated William E. Mitchell, President and Chief Executive Officer of Arrow Electronics, Inc. "Led by Kurt Schoffer and Manfred Moullion DNS will serve as our platform for expanding our successful enterprise computing solutions business throughout Europe. We expect this transaction to be between $.06 to $.09 accretive in 2006." The transaction is subject to customary closing conditions, including obtaining necessary government approvals, and is expected to be completed within the next six to eight weeks.

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March 28 2024 10:16 am V22.4.20-2
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